Hertz Global Holdings Inc (HTZ): Today's Featured Diversified Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Hertz Global Holdings ( HTZ) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole was unchanged today. By the end of trading, Hertz Global Holdings fell $0.47 (-2.0%) to $23.25 on average volume. Throughout the day, 10,639,334 shares of Hertz Global Holdings exchanged hands as compared to its average daily volume of 7,107,400 shares. The stock ranged in price between $23.21-$23.91 after having opened the day at $23.85 as compared to the previous trading day's close of $23.72. Other companies within the Diversified Services industry that declined today were: CIBT Education Group ( MBA), down 18.2%, DLH Holdings ( DLHC), down 8.5%, UniTek Global Services ( UNTK), down 5.9% and Career Education Corporation ( CECO), down 5.5%.
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Hertz Global Holdings, Inc., through its subsidiaries, engages in the car and equipment rental businesses worldwide. The company operates in two segments, Car Rental and Equipment Rental. Hertz Global Holdings has a market cap of $9.2 billion and is part of the services sector. The company has a P/E ratio of 42.8, above the S&P 500 P/E ratio of 17.7. Shares are up 45.8% year to date as of the close of trading on Friday.

TheStreet Ratings rates Hertz Global Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, YY ( YY), down 9.2%, Xueda Education Group ( XUE), down 6.0%, Mastech Holdings ( MHH), down 5.7% and Odyssey Marine Exploration ( OMEX), down 5.6% , were all gainers within the diversified services industry with Ulta Salon Cosmetics & Fragrances ( ULTA) being today's featured diversified services industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the diversified services industry could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the diversified services industry could consider ProShares Ultra Short Consumer Sers ( SCC).

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